Residual income is excess of operating income over net income
Indicate whether the statement is true or false
False
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The value of goals or outcomes is called ______.
A. expectancy B. valence C. self-efficacy D. instrumentality
Presented below are the financial balances for the Boxwood Company and the Tranz Company as of December 31, 2017, immediately before Boxwood acquired Tranz. Also included are the fair values for Tranz Company's net assets at that date. Boxwood Tranz Co. Tranz Co.?(all amounts in thousands) Book value Book value Fair value 12/31/2017 12/31/2017 12/31/2017Cash$870 $240 $240 Receivables 660 600 600 Inventory 1,230 420 580 Land 1,800 260 250 Buildings (net) 1,800 540 650 Equipment (net) 660 380 400 Accounts payable (570) (240) (240)Accrued expenses (270) (60) (60)Long-term liabilities (2,700) (1,020) (1,120)Common stock ($20 par) (1,980) Common stock ($5
par) (420) Additional paid-in capital (210) (180) Retained earnings (1,170) (480) Revenues (2,880) (660) Expenses 2,760 620 ??Note: Parenthesis indicate a credit balance??Assume a business combination took place at December 31, 2017. Boxwood issued 50 shares of its common stock with a fair value of $35 per share for all of the outstanding common shares of Tranz. Stock issuance costs of $15 (in thousands) and direct costs of $10 (in thousands) were paid to effect this acquisition transaction. To settle a difference of opinion regarding Tranz's fair value, Boxwood promises to pay an additional $5.2 (in thousands) to the former owners if Tranz's earnings exceed a certain sum during the next year. Given the probability of the required contingency payment and utilizing a 4% discount rate, the expected present value of the contingency is $5 (in thousands).?Compute consolidated retained earnings as a result of this acquisition. A. $1,170. B. $1,280. C. $1,160. D. $1,265. E. $1,650.
Arca Incorporated makes a single product-a critical part used in commercial airline seats. The company has a standard cost system in which it applies overhead to this product based on the standard machine-hours allowed for the actual output of the period. Data concerning the most recent year appear below: Budgeted (Planned) Overhead: Budgeted variable manufacturing overhead$38,700 Budgeted fixed manufacturing overhead 170,700 Total budgeted manufacturing overhead$209,400 Budgeted production (a) 20,000units Standard hours per unit (b) 1.50machine-hours Budgeted hours (a) × (b) 30,000machine-hours Applying Overhead: Actual production (a) 15,000units Standard hours per unit (b) 1.50machine-hours Standard hours allowed for the
actual production (a) × (b) 22,500machine-hours Actual Overhead and Hours: Actual variable manufacturing overhead$9,812 Actual fixed manufacturing overhead 185,700 Total actual manufacturing overhead$195,512 Actual hours 22,300machine-hours ?The total of the overhead variances is: A. $13,888 F B. $38,462 F C. $38,462 U D. $13,888 U
Business processes can influence the design of information systems
Indicate whether the statement is true or false